Australian Taxation Office - Portfolio Budget …
Australian Taxation Office
Section 1: Entity overview and resources 173
1.1 Strategic direction statement 173
1.2 Entity resource statement 174
1.3 Budget measures 177
Section 2: Outcomes and planned performance 179
2.1 Budgeted expenses and performance for Outcome 1 180
Section 3: Budgeted financial statements 213
3.1 Budgeted financial statements 213
3.2. Budgeted financial statements tables 214
Australian Taxation Office
Section 1: Entity overview and resources
1.1 Strategic direction statement
The role of the Australian Taxation Office (ATO) is to effectively manage and shape the tax and superannuation systems that support and fund services for Australians, including ensuring the community has confidence in the administration of these systems.
The vision of the ATO is to be a leading tax and superannuation administration, known for its contemporary service, expertise and integrity. The ATO seeks to foster the willing participation of the community in the tax and superannuation systems and to make it easy for them to understand and comply with their obligations.
Our strategic direction relates to designing the right experience through improving digital services and embracing new technologies. The ATO will continue to connect with other government agencies and data sources to collect, share and use data to provide tailored client interactions and encourage voluntary tax compliance.
Critically, the integrity of the system will be maintained by supporting those who choose to do the right thing and dealing with those who do not. Ultimately, client experience and participation in the tax and superannuation systems will be the true measure of success.
1.2 Entity resource statement
Table 1.1 shows the total funding from all sources available to the entity for its operations and to deliver programs and services on behalf of the Government.
The table summarises how resources will be applied by outcome (government strategic policy objectives) and by administered (on behalf of the Government or the public) and departmental (for the entity’s operations) classification.
For more detailed information on special accounts and special appropriations, please refer to Budget Paper No. 4 – Agency Resourcing.
Information in this table is presented on a resourcing (that is, appropriations/cash available) basis, whilst the ‘Budgeted expenses by Outcome 1’ tables in Section 2 and the financial statements in Section 3 are presented on an accrual basis.
Table 1.1: Australian Taxation Office resource statement — Budget estimates for 2019-20 as at Budget April 2019
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Table 1.1: Australian Taxation Office resource statement — Budget estimates for 2019-20 as at Budget April 2019 (continued)
Third party payments from and on behalf of other entities
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a) Annual appropriation amounts appearing for 2018-19 do not include the Appropriation Bills (No. 3) and (No. 4) 2018-2019, as they had not been enacted at the time of publication.
b) Appropriation Bill (No. 1) 2019-20.
c) Estimated adjusted balance carried from previous year for annual appropriation. Excludes $2.0m subject to administrative quarantine under section 51 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act).
d) Excludes departmental capital budget (DCB).
e) Estimated External Revenue receipts under section 74 of the PGPA Act.
f) Departmental capital budgets are not separately identified in Appropriation Bill (No.1) and form part of ordinary annual services items. Please refer to Table 3.5 for further details. For accounting purposes, this amount has been designated as a 'contribution by owner'.
g) Appropriation Bill (No. 2) 2019-20.
h) Excludes trust moneys held in Services for Other Entities and Trust Moneys (SOETM) and other special accounts. For further information on special accounts, please refer to Budget Paper No. 4 - Agency Resourcing. Please also see Table 2.1 for further information on outcome and program expenses broken down by various funding sources, e.g. annual appropriations, special appropriations and special accounts.
i) Amounts credited to the special account(s) from ATO's Departmental annual appropriations.
j) 2018-19 Estimated Actual excludes $4.3m subject to administrative quarantine under section 51 of the PGPA Act.
k) These figures relate to administered expenses such as fuel tax credits, research and development tax incentives, and the Australian Screen Production Incentive. Tax refunds items for 2018-19 are $99.7b including $260m made on behalf of the ATO by the Department of Home Affairs (DHA) for the Tourist Refund Scheme (TRS) under Section 16 of the Tax Administration Act. Estimated tax refund items for 2019-20 are $106.8b including $290m made on behalf of the ATO by the DHA under the TRS.
l) Amounts credited to the special account(s) from ATO's Administered annual and special appropriations.
All figures shown above are GST exclusive - these may not match figures in the cash flow statement.
Prepared on a resourcing (that is, appropriations available) basis.
1.3 Budget measures
Budget measures relating to the ATO are detailed in Budget Paper No. 2 and are summarised below.
Table 1.2: Measures announced since the 2018-19 Mid-Year Economic and Fiscal Outlook (MYEFO)
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Table 1.2: Measures announced since the 2018-19 Mid-Year Economic and Fiscal Outlook (MYEFO) (continued)
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Prepared on a Government Finance Statistics (fiscal) basis. Figures displayed as a negative (-) represent a decrease in funds and a positive (+) represent an increase in funds.
Section 2: Outcomes and planned performance
Government outcomes are the intended results, impacts or consequences of actions by the Government on the Australian community. Commonwealth programs are the primary vehicle by which government entities achieve the intended results of their outcome statements. Entities are required to identify the programs which contribute to government outcomes over the Budget and forward years.
The ATO’s outcome is described below together with its related programs. The following provides detailed information on expenses for each outcome and program, further broken down by funding source.
Note:
Performance reporting requirements in the Portfolio Budget Statements are part of the enhanced Commonwealth performance framework established by the Public Governance, Performance and Accountability Act 2013. It is anticipated that the performance criteria described in Portfolio Budget Statements will be read with broader information provided in an entity’s corporate plans and annual performance statements – included in Annual Reports - to provide an entity’s complete performance story.
The most recent corporate plan for the ATO can be found at:
The most recent annual performance statement can be found in the Annual Report at:
2.1 Budgeted expenses and performance for Outcome 1
|Outcome 1: |
|Confidence in the administration of aspects of Australia’s taxation and superannuation systems through helping |
|people understand their rights and obligations, improving ease of compliance and access to benefits, and managing |
|non-compliance with the law. |
Linked programs
|Australian Financial Security Authority |
|Program 1.1 — Personal Insolvency and Trustee Services |
|Contribution to Outcome 1 made by linked programs |
|Australian Financial Security Authority exchanges information with the ATO and administers the bankruptcy notices |
|and payment arrangements to support this service. |
|Australian Prudential Regulation Authority |
|Program 1.1 — Australian Prudential Regulation Authority |
|Contribution to Outcome 1 made by linked programs |
|Australian Prudential Regulation Authority (APRA) exchanges information with the ATO on superannuation matters. |
|APRA also contributes to the governance and management of the Standard Business Reporting program. |
|Australian Securities and Investments Commission |
|Program 1.1 — Australian Securities and Investment Commission |
|Contribution to Outcome 1 made by linked programs |
|Australian Securities and Investments Commission (ASIC) exchanges information with the ATO in relation to |
|self-managed superannuation fund auditor registration, and financial crime intelligence. ASIC contributes to the |
|management and governance of the Standard Business Reporting program. |
|Australian Transaction Reports and Analysis Centre |
|Program 1.1 — AUSTRAC |
|Contribution to Outcome 1 made by linked programs |
|Australian Transaction Reports and Analysis Centre (AUSTRAC) exchanges information with the ATO and delivers |
|financial crime intelligence that assist key stakeholder agencies to make operational and intelligence decisions. |
|Department of Education and Training |
|Program 2.4 — Higher Education Loan Program |
|Program 2.8 — Building Skills and Capability |
|Contribution to Outcome 1 made by linked programs |
|Department of Education and Training exchanges information with the ATO in relation to the Higher Education Loans |
|Program and Trade Support Loans. |
|Department of the Environment and Energy |
|Program 1.6 — Management of Hazardous Wastes, Substances and Pollutants |
|Program 2.1 — Reducing Australia’s Greenhouse Gas Emissions |
|Contribution to Outcome 1 made by linked programs |
|The Department of the Environment and Energy (DoEE) works with the Australian Taxation Office in the following |
|ways: |
|ATO administers financial aspects of the Product Stewardship for Oil program, pays the benefits on recycled motor |
|oil and collects the levy on new oil entering the market from domestic sources. |
|DoEE shares information with the ATO to confirm trees meet certain conditions when a taxpayer claims a deduction |
|under the Carbon Sink Forest measure. |
|Department of Health |
|Program 4.1 — Medical Benefits |
|Program 4.3 — Pharmaceutical Benefits |
|Program 4.4 — Private Health Insurance |
|Contribution to Outcome 1 made by linked programs |
|Department of Health (DoH) contributes to the administrative arrangements for the Government’s Private Health |
|Insurance Rebate. DoH also works with the ATO to deliver the Multi-agency Data Integration Project. |
|Department of Human Services |
|Program 1.1 — Services to the Community — Social Security and Welfare |
|Program 1.2 — Services to the Community — Health |
|Program 1.3 — Child Support |
|Contribution to Outcome 1 made by linked programs |
|Department of Human Services supports individuals, families and communities to achieve greater self-sufficiency by |
|providing administration and payments services on behalf of the ATO. |
|Department of Home Affairs |
|Program 3.1 — Border-Revenue Collection |
|Contribution to Outcome 1 made by linked programs |
|Department of Home Affairs exchanges information with the ATO, administers the Tourist Refund Scheme and collects |
|border revenue for: Goods and Services Tax, Luxury Car Tax and Wine Equalisation Tax on behalf of the ATO. |
|Department of Industry, Innovation and Science |
|Program 1 — Supporting Science and Commercialisation |
|Program 2 — Growing Business Investment and Improving Business Capability |
|Program 3 — Program Support |
|Contribution to Outcome 1 made by linked programs |
|The Department of Industry, Innovation and Science works together with the ATO to enable the growth and |
|productivity for globally competitive industries through supporting science and commercialisation, growing business|
|investment and improving business capability and streamlining regulation. |
|Department of the Treasury |
|Program 1.1 — Department of the Treasury |
|Contribution to Outcome 1 made by linked programs |
|Department of the Treasury (the Treasury) contributes to the administration of the National Tax Equivalent Regime. |
|Treasury also exchanges information and provides advice to the ATO relating to foreign investment proposals. |
Budgeted expenses for Outcome 1
This table shows how much the ATO intends to spend (on an accrual basis) on achieving the outcome, broken down by program, as well as by Administered and Departmental funding sources.
Table 2.1: Budgeted expenses for Outcome 1
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a) Includes Appropriation Bills (No.1 and No.3).
m) Estimated expenses incurred in relation to receipts retained under section 74 of the PGPA Act.
n) Expenses not requiring appropriation in the Budget year are made up of bad and doubtful debts and remissions expenses, depreciation expenses, amortisation expenses, make good expenses, audit fees and other resources received free of charge.
Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of the budget year as government priorities change.
Table 2.1: Budgeted expenses for Outcome 1 (continued)
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Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of the budget year as government priorities change.
Table 2.1: Budgeted expenses for Outcome 1 (continued)
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Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of the budget year as government priorities change.
Table 2.1: Budgeted expenses for Outcome 1 (continued)
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a) Expenses not requiring appropriation in the Budget year are made up of bad and doubtful debts and remissions expenses, depreciation expenses, amortisation expenses, make good expenses, audit fees and other resources received free of charge.
Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of the budget year as government priorities change.
Table 2.1: Budgeted expenses for Outcome 1 (continued)
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a) Includes Appropriation Bills (No.1 and No.3).
o) Estimated expenses incurred in relation to receipts retained under section 74 of the PGPA Act.
p) Expenses not requiring appropriation in the Budget year are made up of bad and doubtful debts and remissions expenses, depreciation expenses, amortisation expenses, make good expenses, audit fees and other resources received free of charge.
Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of the budget year as government priorities change.
Table 2.2: Performance criteria for Outcome 1
Table 2.2 below details the performance criteria for each program associated with Outcome 1. It also summarises how each program is delivered and where 2019-20 Budget measures have created new programs or materially changed existing programs.
|Outcome 1 |
|Confidence in the administration of aspects of Australia’s taxation and superannuation systems through helping |
|people understand their rights and obligations, improving ease of compliance and access to benefits, and managing |
|non-compliance with the law. |
|Program 1.1 – Australian Taxation Office |
|The objective of the ATO is to administer aspects of Australia’s tax and superannuation systems providing |
|confidence that the right amount of payments are being made and collected. |
|Delivery |The ATO will deliver their objective by: |
| |collecting revenue; |
| |making it easy for the community to understand and comply with obligations; |
| |administering the goods and services tax on behalf of the Australian States and |
| |Territories; and |
| |administering major aspects of Australia’s superannuation system. |
|Purposes |The ATO contributes to the economic and social wellbeing of Australians by fostering |
| |willing participation in the tax and superannuation systems. |
| |We achieve this by: |
| |building trust and confidence |
| |being streamlined, integrated and data driven |
|Performance information 2018-19 and beyond |
|Performance criteria |Targets |
|Confidence — Community confidence in the ATO |Latest result: Not yet reported. New |
| |measure for 2018-19. |
| |Target 2019-20: 65/100 |
| |Target 2020-21 and beyond: As per 2019-20 |
|Registration — Proportion of companies and individuals registered in |Latest result (2017-18): Companies |
|the system |registered in the system: 66.2% |
| |Individuals registered in the system: |
| |105.8% |
| |Target 2019-20: The ATO aims to ensure that|
| |all entities that are required to |
| |participate in the tax and superannuation |
| |system are registered on the ATO’s client |
| |register, allowing a tolerance of 2% |
| |(companies) and 5% (individuals) from the |
| |last reporting period (increase or |
| |decrease) |
| |Target 2020-21 and beyond: As per 2019-20 |
|Performance information 2018-19 and beyond (continued) |
|Performance criteria |Targets |
|Lodgment — Proportion of activity statements and income tax returns |Latest result (2017-18): 77.6% activity |
|lodged on time |statements, 83.0% income tax returns |
| |(2016-17 returns) |
| |Target: 2019-20: |
| |Activity statements lodged on time: 78% |
| |Income tax returns lodged on time: 83% |
| |Target 2020-21 and beyond: As per 2019-20 |
|Payment — Proportion of liabilities paid on time by value |Latest result (2017-18): 89.5% |
| |Target 2019-20: 88% |
| |Target 2020-21 and beyond: As per 2019-20 |
|Correct reporting — Tax gap as a proportion of revenue |Latest result: Refer to Commissioner of |
| |Taxation Annual Report 2017-18 (page 79-81)|
| |for detailed information and trends. |
| |Target 2019-20: Reduce the gap to a level |
| |as low as practicable given the nature and |
| |complexity of the law and the resources |
| |available. |
| |Target 2020-21 and beyond: As per 2019-20 |
|Debt — Ratio of collectable debt to net tax collections |Latest result (2017-18): 5.7% |
| |Target 2019-20: Below 5.5% |
| |Target 2020-21 and beyond: As per 2019-20 |
|Total revenue effects — Tax revenue from all compliance activities |Latest result (2017-18): $16 billion |
| |Target 2019-20: $15 billion |
| |Target 2020-21 and beyond: As per 2019-20 |
|Tax assured — Proportion of the tax base where the ATO has justified |Latest result (2017-18): 45.5% (of total |
|trust that tax paid is correct based on the proportion of income, |tax reported in 2015-16). Refer to the |
|deductions and tax offsets assured |Commissioner of Taxation Annual report |
| |2017-18 (page 82) for detailed information.|
| | |
| |Target 2019-20: Increase the proportion of |
| |the tax base where the ATO has justified |
| |trust to a level as high as practicable |
| |given the nature and complexity of the law |
| |and resources available. |
| |Target 2020-21 and beyond: As per 2019-20 |
|Influence — Government and Treasury perceptions of the ATO and the |Latest result (2017-18): Satisfactory |
|quality of our advice |Target 2019-20: Good |
| |Target 2020-21 and beyond: As per 2019-20 |
|Performance information 2018-19 and beyond (continued) |
|Performance criteria |Targets |
|Compliance cost — Adjusted median cost to individual taxpayers of |Latest result (2017-18): Unchanged (2016-17|
|managing their tax affairs |returns) |
| |Target 2019-20: Remain steady |
| |Target 2020-21 and beyond: As per 2019-20 |
|Working together — Partner perceptions of how the ATO is working |Latest result (2017-18): 61% |
|together with them to administer the tax and superannuation system |Target 2019-20: Equal to or better than the|
| |2018-19 result |
| |Target 2020-21 and beyond: As per 2019-20 |
|Digital — Proportion of inbound transactions received digitally for key|Latest result (2017-18): 88% |
|services |Target 2019-20: 90% |
| |Target 2020-21 and beyond: As per 2019-20 |
|Availability — Key digital systems availability |Latest result: (2017-18): 99.4% |
| |Target 2019-20: 99.5% (excluding planned |
| |outages) |
| |Target 2020-21 and beyond: As per 2019-20 |
|Culture — Level of employee engagement |Latest result (2017-18): 6.9 / 10 |
| |Target 2019-20: Equal or better than the |
| |average result for large agencies |
| |Target 2020-21 and beyond: As per 2019-20 |
|Gender equality — Female representation in the senior executive service|Latest result (2017-18): SES 44.2% female, |
|(SES) and executive level (EL) classifications |55.8% male and EL 48.6% female, 51.4% male.|
| |Target 2019-20: Approx. 50% of SES and |
| |approx. 50% of EL staff |
| |Target 2020-21 and beyond: As per 2019-20 |
|Indigenous representation — Proportion of ATO staff who identify as |Latest result (2017-18): 2.1% |
|Indigenous |Target 2019-20: 2.5% |
| |Target 2020-21 and beyond: As per 2019-20 |
|Staff experience — Employee perceptions around whether they have access|Latest result: Not yet reported. New |
|to the tools and resources needed to perform well |measure for 2018-19 |
| |Target 2019-20: Under development |
| |Target 2020-21 and beyond: As per 2019-20 |
|Tax returns — Proportion of items that are pre-filled |Latest result (2017-18): 87.5% |
| |Target 2019-20: Under development |
| |Target 2020-21 and beyond: As per 2019-20 |
|Performance information 2018-19 and beyond (continued) |
|Performance criteria |Targets |
|Budget — ATO manages its operating budget to balance |Latest result (2017-18): 1.0% deficit |
| |Target 2019-20: +/-0.6% of budget |
| |allocation |
| |Target 2020-21 and beyond: As per 2019-20 |
| |Latest result (2017-18): $0.74 (net) |
|Cost of collection — Cost to collect $100 |Target 2019-20: Consistent with trend |
| |Target 2020-21 and beyond: As per 2019-20 |
|Security policy — level of compliance with Protective Security Policy |Latest result (2017-18): Compliant |
|Framework mandatory requirements |Target 2019-20: Not applicable, ceased in |
| |2018-19 |
|Program 1.2 – Tax Practitioners Board (TPB) |
|The TPB has the general administration of the Tax Agent Services Act 2009 (TASA) and is responsible for the |
|registration and regulation of tax practitioners. These include tax agents, business activity statement (BAS) |
|agents and tax (financial) advisers. |
|The TPB’s establishment, functions and powers are defined in the TASA. The TPB’s role is to ensure that tax |
|practitioner services are provided to the public in accordance with appropriate standards of professional and |
|ethical conduct. |
|Delivery |The TPB has five overarching strategies to deliver its program: |
| |Client Services, supporting consumers and practitioners in the |
| |delivery of tax services – legal and ethically |
| |Investigations and Enforcement, data-driven compliance activities |
| |focusing on high risk and unregistered tax practitioners |
| |Law and Policy, providing guidance and legal advice to shape the law |
| |through litigation and legislation |
| |Corporate Services, providing a complete and uniform governance |
| |framework - including budgeting, people, planning, risk assessment, |
| |change management, and corporate strategy |
| |Technology, supporting business outcomes with digital and IT solutions|
| |for clients and staff, including improved data analytics. |
|Purpose (a) |The TPB seeks to protect consumers of taxation services by regulating |
| |tax practitioners in a fair, consistent and practical way, thereby |
| |strengthening the integrity of the tax practitioner profession by: |
| |Protect all consumers of tax practitioner services |
| |Maintain, protect and enhance the integrity of the registered tax |
| |practitioner profession |
| |The TPB as an efficient and effective regulator |
|Performance information 2018-19 |
|Performance criteria |Targets |
|Register tax practitioners in accordance with eligibility requirements under TASA |
|Provide information guidance and advice to entities to help them to |Majority of feedback on the |
|register |registration process is positive |
| |Forecast: target is achieved as |
| |majority of feedback is positive |
| |Majority of feedback on usefulness of |
| |TPB website content, communications and|
| |education initiatives is positive |
| |Forecast: target is achieved as |
| |majority of feedback is positive |
|Register new practitioners and include them onto the tax practitioner |Meet published service standards for |
|register |processing registration applications |
| |Forecast: target met at 99% |
|Performance information 2018-19 (continued) |
|Performance criteria |Targets |
|Ensure eligibility requirements for registration under TASA are met |Quality assurance processes demonstrate|
| |that mandatory eligibility requirements|
| |are appropriately checked and confirmed|
| |before majority of applications are |
| |approved |
| |Forecast: Quality assurance reviews |
| |show registration decisions align with |
| |requirements |
|Take action to ensure tax practitioners continue to meet eligibility requirements |
|Utilise the Annual Declaration process to ensure the timely termination of|Outcomes of Annual Declaration process |
|registered tax practitioners that no longer meet eligibility requirements |reflect appropriate termination of |
| |registered tax practitioners where they|
| |cease to meet eligibility requirements |
| |Forecast: target is achieved due to the|
| |high numbers of ceased registrations |
|Ensure that only practitioners who meet eligibility requirements remain |Outcomes from renewal process reflect |
|registered |that practitioners who cease to meet |
| |eligibility requirements are no longer |
| |registered |
| |Forecast: target is met |
|Maintain a public register of registered and deregistered practitioners |
|Educate the public regarding the benefits of using registered tax |Regular consumer awareness messaging |
|practitioners and the risks of not doing so |Forecast: publicly available |
| |information is up to date on the |
| |website |
| |Number of media releases regarding |
| |unregistered conduct |
| |Forecast: The TPB continues to focus on|
| |unregistered tax practitioners and |
| |publicise by media releases |
|Ensure the register is maintained and accessible to the public |Public register is available 99% of the|
| |time |
| |Forecast: target met at 99% |
|Performance information 2018-19 (continued) |
|Performance criteria |Targets |
|Educate tax practitioners to understand their obligations under the TASA |
|Publish information and provide guidance and advice to registered tax |Regular publication of information |
|practitioners to assist them to understand their duties and obligations |sheets and other guidance material and |
|under the TASA, including the Code of Professional Conduct |eNews for tax practitioner subscribers |
| |Forecast: target achieved as the TPB |
| |continues to publish and release new |
| |and updated information |
| |Attendance rates and feedback reflects |
| |satisfaction with Outreach events, |
| |speaking engagements and webinars |
| |Forecast: target achieved as attendance|
| |rates continues to be high |
|Engage with recognised professional associations |Feedback reflects satisfaction with |
| |communication and consultation by the |
| |TPB |
| |Forecast: target achieved with regular |
| |consultative forums and communiques |
|Investigate registered tax practitioner conduct that breaches the TASA and impose sanctions where appropriate |
|Maintain effective processes for registered tax practitioners, consumers, |Majority of cases finalised within |
|the public and other agencies to detect, deter and respond to conduct that|published service standard timeframes |
|breaches the TASA |Forecast: met as within standards of |
| |80% |
| |Quality assurance and quality control |
| |processes demonstrate that complaint |
| |handling aligns with the TPB’s policies|
| |and procedures |
| |Forecast: Quality assurance reviews |
| |show compliance decisions align with |
| |requirements |
| |Majority of case outcomes unvaried when|
| |reviewed by the Inspector General of |
| |Taxation |
| |Forecast: target achieved is based on |
| |less than 1% subject to oversight |
|Apply a targeted and strategic risk-based compliance approach |Statistics demonstrate that matters are|
| |progressed in accordance with the TPB’s|
| |risk matrix |
| |Forecast: target met |
|Performance information 2018-19 (continued) |
|Performance criteria |Targets |
|Investigate conduct by unregistered entities that is prohibited under the TASA and initiate Federal Court |
|proceedings where appropriate |
|Maintain effective processes to respond to conduct that is prohibited by |Majority of cases finalised within |
|the TASA |published service standard timeframes |
| |Forecast: met as within standards of |
| |80% |
| |Quality assurance and quality control |
| |processes demonstrate that complaint |
| |handling aligns with TPB’s policies and|
| |procedures |
| |Forecast: Quality assurance reviews |
| |show compliance decisions align with |
| |requirements |
| |Majority of case outcomes unvaried when|
| |reviewed by the Inspector General of |
| |Taxation |
| |Forecast: target achieved is based on |
| |less than 1% subject to oversight |
|Take appropriate action to deter unregistered entities from providing |Cases are finalised within published |
|services prohibited by the TASA |service standards |
| |Forecast: target met as within |
| |standards |
| |Majority of Federal Court decisions |
| |affirm breaches of the TASA. Following |
| |any Federal Court decision, a media |
| |release will be issued where |
| |appropriate |
| |Forecast: target achieved at 100% of |
| |decisions affirmed |
|Recognise professional associations and ensure they meet the eligibility requirements for registration |
|Assess new applications for recognition against eligibility criteria |All new applications are processed and |
| |assessed against the eligibility |
| |criteria as required under the Tax |
| |Agent Services Regulations |
| |Forecast: target achieved at 99% |
|Utilise the Annual Declaration process to ensure recognised professional |Outcomes of Annual Declaration process |
|associations continue to meet eligibility requirements (including |reflect appropriate scrutiny and |
|appropriate governance requirements) |assurance that professional |
| |associations should remain recognised |
| |Forecast: target achieved at 100% |
|Performance information 2018-19 (continued) |
|Performance criteria |Targets |
|All actions and decisions are made in accordance with the law |
|Make evidence based, consistent, transparent, legally sound decisions that|Majority of decisions of the Inspector |
|can withstand external scrutiny |General of Taxation, AAT and Federal |
| |Court affirm TPB’s procedures and |
| |decisions |
| |Forecast: target achieved |
|Ensure TPB is appropriately supported by flexible, agile and capable workforce and information technology systems |
|Develop and implement strategies to enable a flexible workforce and |All staff have current individual |
|enhance staff capability |performance and development agreements |
| |in place (compass discussions) |
| |Forecast: target not achieved |
| |Internal TPB digital systems and |
| |services are available a majority of |
| |the time |
| |Forecast: target achieved at 99% |
|Implement priority initiatives arising from the Board and relevant |Priority initiatives are scoped and |
|Committees |implemented |
| |Forecast: the TPB continues to |
| |prioritise this work |
| |Compliance with whole of government |
| |standards regarding security of |
| |information |
| |Forecast: the TPB continues to work |
| |within these standards |
| |The KPIs set in the Regulator |
| |Performance Framework are met |
| |Forecast: KPI targets achieved |
|Engage with other government agencies particularly the ATO and the Australian Securities and Investments |
|Commission (ASIC) |
|Have appropriate Memorandums of Understanding (MOU) in place to improve |MOUs in place with relevant government |
|data exchange arrangements with relevant government agencies to allow TPB |agencies |
|to take appropriate action under the TASA |Forecast: the TPB continues to work on |
| |and improve its range of MOU’s |
|Identify and raise legislative matters impacting upon the efficient and effective operation of the TASA with |
|Treasury |
|Make submissions to Treasury as required |Treasury considers the TPB’s |
| |submissions |
| |Forecast: the TPB continues to work |
| |with Treasury on a range of items |
|Performance information 2019-20 |
|Performance criteria |Targets |
|Supporting consumers |
|Educate consumers of their rights when using registered tax practitioners |Target: Measures for this new priority|
| |focus are in their formative stage. |
| |Will be detailed further in 2019-20 |
| |Corporate Plan. |
|Supporting the legal and ethical standards of the professions |
|All practitioner applications are processed in a timely manner to reduce |All new and renewal applications are |
|delays for tax practitioners |processed within service standards |
|Acting on misconduct |
|Build on voluntary compliance as a result of our investigations and |Increase in voluntary practitioner |
|enforcement campaigns |compliance |
|Shaping and influencing law and policy |
|Work with Government and Treasury on statutory reform |Treasury considers TPB submissions |
|Strengthening capability |
|Ensure TPB is appropriately supported by a flexible, agile and capable |Internal TPB digital systems and |
|workforce and information technology systems |services are available a majority of |
| |the time |
|Performance information 2020-21 and beyond |
|Performance criteria |Targets |
|As per 2019-20 |As per 2019-20 |
a) The purpose has changed since the 2018-19 corporate plan was published, and the new purpose will be reflected in the 2019-20 corporate plan to be published by 31 August 2019.
|Program 1.3 — Australian Business Register |
|The Commissioner of Taxation is also the Registrar of the Australian Business Register (ABR). The Registrar has |
|separate and distinct responsibilities as outlined in section 28 of the A New Tax System (Australian Business |
|Number) Act 1999. |
| |
|The ABR program contributes to micro-economic reform initiatives as the custodian of trusted business information |
|and provider of associated services used by businesses, government and communities to unlock economic and social |
|value for Australia. |
| |
|The ABR program encompasses: |
|the Register, which is a trusted national business dataset and business registry services |
|Standard Business Reporting, which defines a common language for business information and standards for digital |
|information exchange and sharing with businesses and government |
|secure authentication options, giving business easy access to a range of services. |
|Delivery |The ABR program works with Government, Digital Service Providers, the |
| |business community and other key stakeholders to support a fairer |
| |business environment that fosters greater economic growth and job |
| |creation. This will be achieved through increased use of a trusted |
| |national business dataset and use of consistent information exchange |
| |standards. |
|Purpose |The ABR program contributes to improving national productivity by: |
| |delivering effective and efficient business registry services that |
| |provide trusted and accessible national business data |
| |encourage trust and confidence in the broader use of national business |
| |data, by the community, businesses and government to promote the |
| |development of new and better services for businesses, using the ABN as|
| |a key identifier |
| |reducing the administrative cost to businesses in their dealings with |
| |other businesses and government. |
|Performance information 2018-19 and beyond |
|Performance criteria |Targets |
|Increased use of the ABR as the national business dataset |Latest result (2017-18): |
| |312 government agencies using ABR |
| |Explorer (34% increase) |
| |11 agencies using ABR connect |
| |Total of 1.031 billion ABN Lookup |
| |searches, a 32.5% increase |
| |Target 2019-20: |
| |ABR Explorer — 370 |
| |ABR Connect — 14 |
| |ABN Lookup — 1.3 billion |
| |Target 2020-21: |
| |ABR Explorer — 400 |
| |ABR Connect — 16 |
| |ABN Lookup — 1.5 billion |
| |Target 2021-22: |
| |ABR Explorer — 420 |
| |ABR Connect — 18 |
| |ABN Lookup — 1.8 billion |
| |Target 2022-23: As per 2021-22 |
|Reduction in the administrative cost to businesses and government in |Latest result (2017-18): |
|dealing with each other |$1.58 billion |
| |Target 2019-20: |
| |Total — $1.95 billion |
| |Target 2020-21: |
| |Total — $1.98 billion |
| |Target 2021-22: |
| |Total — $2.00 billion |
| |Target 2022-23: |
| |as per 2021-22 |
|Program 1.4 — Australian Charities and Not-for-profits Commission |
|The Australian Charities and Not for profits Commission (ACNC) is the independent national regulator of charities.|
|The ACNC Commissioner (the Commissioner) has a number of statutory functions and regulatory powers set out in the |
|Australian Charities and Not-for-profits Commission Act 2012 (Cth) (ACNC Act), the Charities Act 2013 (Cth) (the |
|Charities Act) and accompanying regulations. The ACNC contributes to a charity sector that inspires confidence and|
|respect by: |
|Adopting best practice in regulation and delivering effective regulatory services; |
|Collecting data that is securely stored, populates the register for public access and to share with authorized |
|partners; |
|Working collaboratively across Government to reduce the administrative burden on charities; |
|Building systems and processes that support quality, efficient and effective interactions with customers; |
|Sustaining an independent, transparent and well governed agency with a positive culture and strong customer |
|service ethos. |
|Delivery |The ACNC effectively managed a regulatory system for the Australian charitable sector by: |
| |registering eligible not-for-profit entities as charities in accordance with the ACNC Act |
| |and the Charities Act. |
| |providing information, guidance and advice about good governance practices and to assist |
| |charities to meet their obligations to maintain charity registration. |
| |assess concerns raised about registered charities, investigate where appropriate and |
| |initiate compliance action against charities that contravene the ACNC Act, the Charities |
| |Act, Governance Standards or External Conduct Standards. |
| |working with other Government agencies (Commonwealth, state and territory) to reduce |
| |unnecessary regulation on charities and align regulatory obligations through various |
| |mechanisms, including the ACNC’s Charity Passport. |
|Purpose |to maintain, protect and enhance public trust and confidence in the Australian |
| |not-for-profit sector; |
| |to support and sustain a robust, vibrant, independent and innovative Australian |
| |not-for-profit sector; |
| |to promote the reduction of unnecessary regulatory obligations on the Australian |
| |not-for-profit sector. |
|Performance information 2018-19 |
|Performance criteria |Targets |
|Maintain, protect and enhance public trust and confidence in the Australian not-for-profit sector |
|Meet published service standards for processing registration applications |Target: met |
|and finalising investigations |Latest result: Target met for |
| |registration application processing |
| |Latest result: Target not met for |
| |finalising investigations |
|Registered charities meet their obligations to lodge an Annual Information|Target: 75% of charities lodge their |
|Statement (AIS) |AIS on time |
| |Latest result: Not yet reported, first|
| |AIS due date in future |
|Performance information 2018-19 (continued) |
|Performance criteria |Targets |
|Charities identified as being ineligible to be registered are revoked and |Target: 100% |
|removed from the charity register |Latest result: Target not met |
|Develop, publish on the website and implement a data integrity strategy for |Target: met |
|each Annual Information Statement detailing the risk based approach to |Latest result: Target met |
|confirming accuracy of reporting | |
|Decisions are evidence based, consistent and transparent |Target: Quality assurance processes |
| |demonstrate decisions align with the |
| |regulatory approach and are legally |
| |sound |
| |Latest result: Target met |
|Support and sustain a robust, vibrant, independent and innovative Australian not-for-profit sector |
|Information, guidance and advice provided to charities to help them |Targets: |
|understand their obligations and support good governance is timely accurate |Enquiries are responded to according |
|and accessible |to the published service standards |
| |Latest result: Target not met |
| |Quality assurance reviews of advice |
| |provided by staff meets a 75% or |
| |higher rating |
| |Latest result: Target met |
|Data about charities collected by the ACNC is made available to the public |Targets: |
|in an accessible format |Publicly available data about |
| |registered charities is up to date and|
| |available on .au |
| |Latest result: Target met |
| |The charity register is redesigned to |
| |better present data to inform donor |
| |decision making |
| |Latest result: Target met |
|Promote the reduction of unnecessary regulatory obligations on the Australian not-for-profit sector |
|Reduce red tape for charities by simplifying and streamlining reporting |Target: The Regulator Performance |
| |Framework demonstrates a reduction in |
| |red tape for charities |
| |Latest result: Target met |
|Performance information 2019-20 |
|Performance criteria |Targets |
|Maintain, protect and enhance public trust and confidence in the Australian not-for-profit sector |
|New charities are registered and included on the Charity Register and |Target: Meet published service |
|charities identified as being ineligible to be registered are revoked and |standards for processing registration |
|removed from the Charity Register |applications and finalising |
| |investigations |
|Registered charities meet their obligations to lodge an Annual Information |Target: |
|Statement (AIS) and where applicable, an Annual Financial Report (AFR) |75% of charities lodge their AIS on |
| |time |
| |100% of charities with two outstanding|
| |AIS’s are removed from the register |
| |biannually |
|ACNC operates in accordance with a clearly articulated risk framework and |Target: Policies and business |
|risk based approach to charity registration, and compliance activities |processes align with the ACNC’s |
| |Regulatory Risk Framework and risk |
| |based approach |
|Decisions are evidence based, consistent and transparent |Target: Quality assurance processes |
| |demonstrate decisions align with the |
| |regulatory approach and are legally |
| |sound |
|Information provided by charities in the AIS and where applicable, AFR, is |Target: Develop, publish on the |
|examined for accuracy |website and implement a data integrity|
| |strategy for each AIS detailing the |
| |risk based approach to confirming |
| |accuracy of reporting |
|Support and sustain a robust, vibrant, independent and innovative Australian not-for-profit sector |
|The ACNC will publish data against the criteria that have been determined to|Publicly available data about these |
|measure the characteristics referred to in Object 2 of the ACNC Act. |measures is up to date and available |
| |on .au |
|Information, guidance and advice provided to charities to help them |Targets: |
|understand their obligations and support good governance is timely accurate |Enquiries are responded to according |
|and accessible |to the published service standards |
| |Quality assurance reviews of advice |
| |provided by staff meets a 75% or |
| |higher rating |
|Data about charities collected by the ACNC is made available to the public |Targets: |
|in an accessible format |Publicly available data about |
| |registered charities is up to date and|
| |available on .au |
| |The charity register is redesigned to |
| |better present data to inform donor |
| |decision making |
|Performance information 2019-20 (continued) |
|Performance criteria |Targets |
|Promote the reduction of unnecessary regulatory obligations on the Australian not-for-profit sector |
|Reduce unnecessary regulation for charities by simplifying and streamlining |Target: The Regulator Performance |
|reporting |Framework demonstrates a reduction in|
| |unnecessary regulation for charities |
|Performance information 2020-21 and beyond |
|Performance criteria |Targets |
|As per 2019-20 |As per 2019-20 |
|Program 1.5 – 1.18 Administered programs |
|The ATO administers a range of payments and transfers on behalf of the Australian Government, including incentives|
|and rebates delivered through the taxation and superannuation systems. |
|Delivery |Administered programs may be administered by the ATO with policy and delivery assistance |
| |from other Commonwealth agencies, or directly through the taxation and superannuation |
| |systems. |
|Purpose |The ATO contributes to the economic and social wellbeing of Australians through governing|
| |a range of programs that result in transfers and benefits back to the community. |
|Program 1.5 — Australian Screen Production Incentive |
|The Australian Screen Production Incentive comprises three refundable film tax offsets: the Producer Offset, the |
|Location Offset, and the Post, Digital and Visual Effects (PDV) Offset. These offsets are designed to ensure |
|Australia remains competitive in attracting high budget film and television productions and are aimed at providing|
|increased opportunities for Australian casts, crew, post-production companies and other services to participate in|
|these productions. The Ministry for the Arts, along with Screen Australia and the ATO, have co-administration |
|responsibilities for the program. Screen Australia has responsibility for the Producer Offset while the Ministry |
|for the Arts has responsibility for the Location and PDV Offset. The ATO conducts verification and reconciliation |
|with the certificates provided by the government agencies before the offset is paid to the taxpayer. |
|Performance information 2018-19 and beyond |
|Performance criteria |Targets |
|Value of tax offsets processed |Latest result (2017-18): $281.8 |
| |million |
| |Target 2019-20: The ATO aims to |
| |administer the program in accordance |
| |with the law |
| |Target 2020-21 and beyond: As per |
| |2019-20 |
|Program 1.6 — Junior Minerals Exploration Incentive |
|The Junior Minerals Exploration Incentive will allow small mineral exploration companies with no taxable income to|
|provide exploration credits, paid as a refundable tax offset, to their Australian resident shareholders for |
|greenfield mineral exploration. |
|Performance information 2018-19 and beyond |
|Performance criteria |Targets |
|All applications received are processed and taxpayers notified of their |Latest result (2017-18): 100% |
|exploration credit allocation within 28 calendar days of the application |Target 2019-20: 100% notifications |
|period closing |issued within 28 calendar days of the |
| |application period closing |
| |Target 2020-21: As per 2019-20 |
| |The program ends in 2020-21 |
|Public reporting data uploaded on .au (and linked to the .au|Latest result (2017-18): KPI met |
|website) after determination letters are issued |Target 2019-20: Within 56 calendar |
| |days of the application period closing|
| | |
| |Target 2020-21: As per 2019-20 |
| |The program ends in 2020-21 |
|Program 1.7— Fuel Tax Credits Scheme |
|The objective of the Fuel Tax Credits Scheme is to remove or reduce the incidence of fuel tax levied on taxable |
|fuels by providing a credit for fuel used for: |
|business activities in machinery, plant and equipment and vehicles; |
|the domestic generation of electricity by taxpayers not in business. |
|Performance information 2018-19 and beyond |
|Performance criteria |Targets |
|Value of claims |Latest result (2017-18): $6.8 billion |
| |Target 2019-20:The ATO aims to |
| |administer the scheme in accordance |
| |with the law |
| |Target 2020-21 and beyond: As per |
| |2019-20 |
|Program 1.8 — National Rental Affordability Scheme |
|The Department of Social Services has policy responsibility for the National Rental Affordability Scheme. The |
|objectives are to: |
|increase the supply of new affordable rental housing; |
|reduce rental costs for low and moderate income households — National Rental Affordability Scheme homes rented to |
|eligible tenants at a rate that is at least 20 per cent below the market value rent; and |
|encourage large-scale investment and innovative delivery of affordable housing through the provision of the |
|following incentives: |
|an Australian Government incentive per dwelling per year as a tax offset or direct payment; and |
|a State or Territory Government incentive as a direct payment per dwelling per year or in-kind financial support. |
|Performance information 2018-19 and beyond |
|Performance criteria |Targets |
|Value of tax offsets processed |Latest result (2017-18): $188.2 |
| |million |
| |Target 2019-20:The ATO aims to |
| |administer the scheme in accordance |
| |with the law |
| |Target 2020-21 and beyond: As per |
| |2019-20 |
|Program 1.9 — Product Stewardship for Oil |
|The objective of the Product Stewardship for Oil Program is to: |
|provide incentives to increase used oil recycling; and |
|encourage the environmentally sustainable management and re-refining of used oil and its re-use. |
|These objectives are met through the payment of a levy by producers and importers of petroleum based oils and |
|their synthetic equivalents. Benefits are paid to oil recyclers as an incentive to undertake increased recycling |
|of used oil. |
|The Department of the Environment and Energy has policy responsibility for the program, with the ATO administering|
|the program on its behalf. |
|Performance information 2018-19 and beyond |
|Performance criteria |Targets |
|Value of revenue collected |Latest result (2017-18): $33.6 million|
| |Target 2019-20: The ATO aims to |
| |administer the program in accordance |
| |with the law |
| |Target 2020-21 and beyond: As per |
| |2019-20 |
|Value of payments processed |Latest result (2017-18): $74.9 million|
| |Target 2019-20: The ATO aims to |
| |administer the program in accordance |
| |with the law |
| |Target 2020-21 and beyond: As per |
| |2019-20 |
|Program 1.10 — Research and Development Tax Incentive |
|The Research and Development (R&D) Tax Incentive is an ongoing scheme designed to increase the level of research |
|and development being conducted by Australian companies. |
|The Department of Industry, Innovation and Science has the primary policy responsibility for the program with the |
|aim of increasing both the number of companies investing in innovation and the value of innovation investment over|
|time. |
|The ATO has an important supporting role in processing claims through the tax system for the R&D offset. |
|Performance information 2018-19 and beyond |
|Performance criteria |Targets |
|Value of claims processed for 38.5% non-refundable research and development|Latest result (2017-18): $2.9 billion |
|tax offset claimants |tax offset paid (based on 38.5% |
| |non-refundable research and |
|Value of claims processed for companies claiming the non-refundable |development tax offset claimants) |
|research and development tax offset (38.5% of notional R&D deductions) |Target 2019-20: The ATO |
| |aims to administer the |
|(Note: change to measure name for 2019-20) |program in accordance with the law |
| |Target 2020-21 and beyond: As per |
| |2019-20 |
|Value of claims processed for 43.5% refundable research and development tax|Latest result (2017-18): $2.5 billion |
|offset claimants |tax offset paid (based on 43.5% |
| |refundable research and development |
|Value of claims processed for companies claiming the refundable research |tax offset claimants) |
|and development tax offset (43.5% of notional R&D deductions) |Target 2019-20: The ATO |
| |aims to administer the |
|(Note: change to measure name for 2019-20) |program in accordance with the law |
| |Target 2020-21 and beyond: As per |
| |2019-20 |
|Number of claims processed for 38.5% non-refundable research and |Latest result (2017-18): 1,754 (based |
|development tax offset claimants |on 38.5% non-refundable research and |
| |development tax offset claimants) |
|Number of claims processed for companies claiming the non-refundable |Target 2019-20:The ATO |
|research and development tax offset (38.5% of notional R&D deductions) |aims to administer the |
| |program in accordance with the law |
|(Note: change to measure name for 2019-20) |Target 2020-21and beyond: As per |
| |2019-20 |
|Performance information 2018-19 and beyond (continued) |
|Performance criteria |Targets |
|Number of claims processed for 43.5% refundable research and development |Latest result (2017-18): 11,402 (based|
|tax offset claimants |on 43.5% refundable research and |
| |development tax offset claimants) |
|Number of claims processed for companies claiming the refundable research |Target 2019-20: The ATO |
|and development tax offset (43.5% of notional R&D deductions) |aims to administer the |
| |program in accordance with the law |
|(Note: change to measure name for 2019-20) |Target 2020-21and beyond: As per |
| |2019-20 |
|Proportion of offsets processed within service standard timeframes |Latest result (2017-18): 76% |
| |Target 2019-20: The ATO |
| |aims to administer the |
| |program in accordance with the law |
| |Target 2020-21and beyond: As per |
| |2019-20 |
|Program 1.11 — Low Income Superannuation Tax Offset |
|The Low Income Superannuation Tax Offset (LISTO) is aimed to address some of the inequity in the superannuation |
|system, where low income earners with a marginal rate of tax less than 15 per cent, pay a higher rate of tax on |
|superannuation contributions than if they had received the money as salary and wages. |
|The LISTO replaces the low income superannuation contribution (LISC) policy from 1 July 2017. LISC will continue |
|to be payable for concessional contributions made up to and including the 2016-17 year, however, determinations |
|will cease at 1 July 2019. |
|The Treasury has policy responsibility for the program, while the ATO administers the program and provides |
|information and support to individuals and superannuation funds through advice and education services. |
|Performance information 2018-19 and beyond |
|Performance criteria |Targets |
|Value of entitlements paid |Latest result (2017-18): $779.3 |
| |million |
| |Target 2019-20: The ATO aims to |
| |administer the program in accordance |
| |with the law |
| |Target 2020-21 and beyond: As per |
| |2019-20 |
|Program 1.12 — Private Health Insurance Rebate |
|The objective of the Private Health Insurance Rebate is to provide access to a benefit to eligible individuals |
|with private health insurance and to act as an incentive to take up private health insurance. |
|The Department of Health has policy responsibility for the program, and the administration of the program is split|
|between the ATO and registered health insurers, depending on the claim method. |
|Performance information 2018-19 and beyond |
|Performance criteria |Targets |
|Value of rebates processed |Latest result (2017-18): $248.8 |
| |million |
| |Target 2019-20: The ATO aims to |
| |administer the program in accordance |
| |with the law |
| |Target 2020-21 and beyond: As per |
| |2019-20 |
|Program 1.13 — Superannuation Co-contribution Scheme |
|The Superannuation Co-contribution Scheme is to help low and middle income earners save for their retirement. |
|Eligible individuals who make personal superannuation contributions to a complying superannuation fund or |
|retirement savings account receive a co-contribution from the Government up to certain limits. |
|The Treasury has policy responsibility for the program, while the ATO administers the program and provides |
|information and support to individuals and superannuation funds through marketing and education services. |
|Performance information 2018-19 and beyond |
|Performance criteria |Targets |
|Value of entitlements paid |Latest result (2017-18): $125.8 million |
| |Target 2019-20: The ATO aims to administer the |
| |scheme in accordance with the law |
| |Target 2020-21 and beyond: As |
| |per 2019-20 |
|Program 1.14 — Superannuation Guarantee Scheme |
|Under the Superannuation Guarantee (Administration) Act 1992 (SGAA), most employers must pay superannuation |
|contributions into a complying superannuation fund or retirement savings account. |
|Non-compliance with the SGAA by employers means that eligible employees will not receive their entitlements to, |
|and benefits of, superannuation in their retirement. |
|Performance information 2018-19 and beyond |
|Performance criteria |Targets |
|Superannuation guarantee gap as a proportion of superannuation |Latest result : 4.8% or $2,790 million (2015-16).|
|guarantee contributions |Refer to Commissioner of Taxation Annual Report |
| |2017-18 (page 79-81) for detailed information and|
| |trends. |
| |Target 2019-20: Reduce the gap to a level as low |
| |as practicable given the nature and complexity of|
| |the law and the resources available. |
| |2020-21 and beyond: as per 2019-20 |
|Value of superannuation guarantee charge: |Latest result (2017-18): $1,107.2 million raised;|
|raised (including penalties and interest) |$440.9 million collected |
|collected |(Raised) |
| |Target 2019-20 : $985 million |
| |Target 2020-21: $971 million |
| |Target 2021-22: $984 million |
| |Target 2022-23: as per 2021-22 |
| |(Collected) |
| |Target 2019-20: $438 million |
| |Target 2020-21: $392 million |
| |Target 2021-22: $404 million |
| |Target 2022-23: as per 2021-22 |
|Value of superannuation guarantee entitlements distributed to |Latest result (2017-18): $401.6 million |
|individuals or superannuation funds |Target 2019-20: $404 million |
| |Target 2020-21: $362 million |
| |Target 2021-22: $375 million |
| |Target 2022-23: as per 2021-22 |
|Value of superannuation guarantee debt on hand and the amount of |Latest result (2017-18): $1.9 billion debt on |
|superannuation guarantee debt irrecoverable at law or |hand; $238.8 million irrecoverable or |
|uneconomical to pursue |uneconomical to pursue |
| |Debt on hand: |
| |Target 2019-20: $2,600 million |
| |Target 2020-21:$3,000 million |
| |Target 2021-22:$3,300 million |
| |Target 2022-23:as per 2021-22 |
| |Irrecoverable at law or uneconomical to pursue: |
| |Target 2019-20: $223 million |
| |Target 2020-21:$231 million |
| |Target 2021-22:$240 million |
| |Target 2022-23: As per 2021-22 |
|Performance information 2018-19 and beyond (continued) |
|Performance criteria |Targets |
|Number of superannuation guarantee complaints leading to a |Latest result (2017-18): |
|superannuation liability being raised and those leading to no |13,441 liability being raised; |
|result |5,472 no result |
| |Target 2019-20: Not applicable, ceased in 2018-19|
|Number of employees who have had superannuation guarantee |Latest result (2017-18): |
|entitlements raised as a result of ATO compliance activities and |237,945 compliance activities; |
|voluntary disclosures |77,785 voluntary disclosures |
| |Target 2019-20: Not applicable, ceased in 2018-19|
|Number of employers whose records are checked and the number |Latest result (2017-18): |
|leading to a superannuation liability being raised |24,106 checked; |
| |16,416 liability raised |
| |Target 2019-20: Not applicable, ceased in 2018-19|
|Proportion of employers for whom superannuation guarantee |Latest result (2017-18): |
|liabilities were raised by the ATO |1.8% |
| |Target 2019-20: Not applicable, ceased in 2018-19|
|Program 1.15 — Targeted Assistance Through the Taxation System |
|Under the Superannuation (Unclaimed Money and Lost Members) Act 1999, superannuation funds must identify certain |
|types of lost and former temporary resident accounts as unclaimed superannuation money and transfer amounts to the|
|ATO every six months. |
|Since 1 July 2013, any unclaimed superannuation money payments from the ATO to individuals includes interest, at a|
|rate equivalent to the consumer price index, to preserve the value of these accounts. While the Treasury has |
|policy responsibility, the ATO administers the program. |
|Performance information 2018-19 and beyond |
|Performance criteria |Targets |
|Value of interest payments processed |Latest result (2017-18): $14.9 million |
| |Target 2019-20:The ATO aims to administer the |
| |program in accordance with the law |
| |Target 2020-21 and beyond: As |
| |per 2019-20 |
|Program 1.16 — Interest on Overpayment and Early Payments of Tax |
|The objective of the program is to apply credit interest to taxpayers’ accounts where they are entitled under the |
|law. |
|The application of credit interest is non-discretionary where an entitlement exists under the Taxation (Interest |
|on Overpayments and Early Payments) Act 1983. Administered interest regimes include: |
|interest on overpayments of tax; |
|delayed refund interest; and |
|interest on early payments of tax. |
|Performance information 2018-19 and beyond |
|Performance criteria |Targets |
|Value of credit interest applied to client accounts due to |Latest result (2017-18): $13 million |
|processing performance |Target 2019-20:The ATO aims to administer the |
| |program in accordance with the law |
| |Target 2020-21 and beyond: As |
| |per 2019-20 |
|Program 1.17 — Bad and Doubtful Debts and Remissions |
|The primary objective of the program is to help ensure that the value of tax receivables reported is a true and |
|fair estimate of what can be collected on behalf of the Australian Government. |
|The ATO may not be able to collect all tax liabilities due. The ATO estimates the amount it does not expect to |
|recover and, in accordance with Australian Accounting Standards, creates an impairment allowance provision for |
|this amount. This provision is one of the amounts offset against the gross total taxation receivables to determine|
|the net total taxation receivables, which is a true and fair estimate of what can be collected on behalf of the |
|Australian Government. |
|Performance information 2018-19 and beyond |
|Performance criteria |Targets |
|Provision for bad and doubtful debts as a proportion of total tax|Latest result (2017-18): 35% |
|receivables |Target 2019-20: Below 35% |
|Proportion of total tax receivables unlikely to be collected |Target 2020-21 and beyond: As |
|(provision) |per 2019-20 |
|(Note: change to measure name for 2019-20) | |
|Program 1.18 — Other Administered |
|The Seafarer Tax Offset commenced from 1 July 2012 and is designed to stimulate employment opportunities for |
|Australian seafarers to gain maritime skills. The offset will provide a refundable tax offset for qualifying |
|companies employing eligible seafarers. A Bill to abolish the Seafarer Tax Offset was tabled in Parliament, but |
|has now lapsed. There has been no Government announcement on the future of the Seafarer Tax Offset since the |
|lapsing of the Bill. |
|Performance information 2018-19 and beyond |
|Performance criteria |Targets |
|Seafarer Tax Offset |
|Eligible taxpayers are aware of how to claim the offset |Latest result (2017-18): 100% |
| |Target 2019-20: 100% |
| |Target 2020-21 and beyond: As |
| |per 2019-20 |
Section 3: Budgeted financial statements
Section 3 presents budgeted financial statements which provide a comprehensive snapshot of entity finances for the 2019-20 budget year, including the impact of budget measures and resourcing on financial statements.
3.1 Budgeted financial statements
3.1.1 Differences between entity resourcing and financial statements
The entity resourcing statements (Table 1.1) have been prepared on cash/appropriation available basis whilst the budgeted financial statements presented in this section have been prepared on an accrual basis under AASB 1049 Whole of Government and General government sector financial reporting, and requirements applicable to entity level financial reporting.
3.1.2 Explanatory notes and analysis of budgeted financial statements
Departmental comprehensive income statement (Table 3.1)
The ATO’s total operating revenue for 2019-20 is estimated at $3.6 billion while expenditure is estimated to be $3.7 billion, inclusive of unfunded depreciation. These budgeted amounts have increased since the 2018-19 Additional estimates mainly due to new Budget expense measures, changes in own-source income and indexation movements.
Departmental balance sheet (Table 3.2)
ATO’s net assets as at 30 June 2020 is expected to be $48.1 million. Net assets have decreased by $9.1 million since 2018-19 Additional Estimates mainly due to increases in depreciation expenses.
Departmental capital budget statement (Table 3.5)
Total new capital appropriations and total purchase of non-financial assets in 2019-20 have increased by $34.3 million since the 2018-19 Additional Estimates as a net result of new capital measures.
3.2. Budgeted financial statements tables
Table 3.1: Comprehensive income statement (showing net cost of services) for the period ended 30 June
[pic]
a) From 2010-11, the Government introduced net cash appropriation arrangements where Bill 1 revenue appropriations for the depreciation/amortisation expenses of non-corporate Commonwealth entities (and select corporate Commonwealth entities) were replaced with a separate capital budget (the Departmental Capital Budget, or DCB) provided through Bill 1 equity appropriations. For information regarding DCBs, please refer to Table 3.5 Departmental Capital Budget Statement.
Table 3.1: Comprehensive income statement (showing net cost of services) for the period ended 30 June (continued)
Note: Impact of net cash appropriation arrangements
[pic]
a) From 2010-11, the Government introduced net cash appropriation arrangements where Bill 1 revenue appropriations for the depreciation/amortisation expenses of non-corporate Commonwealth entities (and select corporate Commonwealth entities) were replaced with a separate capital budget (the Departmental Capital Budget, or DCB) provided through Bill 1 equity appropriations. For information regarding DCBs, please refer to Table 3.5 Departmental Capital Budget Statement.
Prepared on Australian Accounting Standards basis.
Table 3.2: Budgeted departmental balance sheet (as at 30 June)
[pic]
*‘Equity’ is the residual interest in assets after deduction of liabilities.
Prepared on Australian Accounting Standards basis.
Table 3.3: Departmental statement of changes in equity — summary of movement (Budget year 2019-20)
[pic]
Prepared on Australian Accounting Standards basis
Table 3.4: Budgeted departmental statement of cash flows (for the period ended 30 June)
[pic]
Prepared on Australian Accounting Standards basis.
Table 3.5: Departmental capital budget statement (for the period ended 30 June)
[pic]
a) Includes reclassification of $20m from Operating Budget to Departmental Capital Budget (DCB) subject to Appropriation Bill (No. 3) 2018-19.
b) Includes both current Bill 2 and prior Act 2/4/6 appropriations.
c) Does not include annual finance lease costs. Include purchases from current and previous years' DCBs.
d) Includes s74 External Revenue.
Prepared on Australian Accounting Standards basis.
Table 3.6: Statement of asset movements (Budget year 2019-20)
[pic]
a) 'Appropriation equity' refers to equity injections appropriations provided through Appropriation Bill (No. 2) 2019-20.
q) 'Appropriation ordinary annual services' refers to funding provided through Appropriation Bill (No.1) 2019-20 for depreciation/amortisation expenses, DCBs or other operational expenses.
Prepared on Australian Accounting Standards basis.
Table 3.7: Schedule of budgeted income and expenses administered on behalf of Government (for the period ended 30 June)
[pic]
Prepared on Australian Accounting Standards basis.
Table 3.8: Schedule of budgeted assets and liabilities administered on behalf of Government (as at 30 June)
[pic]
Prepared on Australian Accounting Standards basis.
Table 3.8: Schedule of budgeted assets and liabilities administered on behalf of Government (as at 30 June) (continued)
[pic]
Prepared on Australian Accounting Standards basis.
Table 3.9: Schedule of budgeted administered cash flows (for the period ended 30 June)
[pic]
Prepared on Australian Accounting Standards basis.
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